Investors paid 26.81p per share in the New Listing for this property, and it became available on the Resale market June 30th 2015.
We believe that this house and the area of Plumstead have a compelling investment case, which is underpinned by three factors:
- The ongoing transformation of Plumstead and surrounding areas, which ought to have a significant impact on long-term prospects for the area.
- The benefit of access to Crossrail stations at Woolwich and Abbey Wood in 2018. The decrease in journey times to central London is expected to have an impact on local GDP, which is a key driver of house prices and rental values.
- Property prices in Plumstead are lower than surrounding areas. As residents in South-East London seek better value, and reduced travel times, Plumstead is well placed to benefit from capital growth.
You can read more on the investment case, here.
Property Partner does not provide investment advice and any general information is provided to help you make your own informed decisions. If you are unsure whether an investment is suitable for you, you should contact a financial adviser for advice.
The house is located directly opposite “Winn’s Common” and 15 minutes from Plumstead station, which is only one stop from the Crossrail stations due to open in Woolwich and Abbey Wood.
The house was acquired vacant and in good condition. The Chartered Surveyor’s report notes, and we have confirmed in our inspection, that access to the ground floor bathroom is through a conservatory-style glass extension. The number of lenders who would be willing to provide mortgage finance could be limited, while the current configuration applies. Reduced lending options would in turn limit the number of potential buyers - and the price we have agreed with the vendor reflects this possibility. There are cost-effective options available to remedy this situation and the value uplift associated with doing this is expected to be at least equal to the cost of the works. However, these measures are not required while the property is being let.
We have made a precautionary provision of £1,500 for tests that are required and any remedial works that the testing reveals. There is also a provision of £1,200 for furnishings.
The total rent forecast is £13,800 per annum. At this level of rent, Gross Rental Yield is 4.25% and the forecast Dividend Yield is 2.82% (fully accounting for purchase costs, furnishings, remedial cosmetic works, forecast maintenance, annual voids, corporate taxation and all fees). From April 2016 UK taxpayers are entitled to a £5,000 annual dividend allowance. See our FAQs here for more information.
Due to over performance against historic provisions, there is surplus cash within the SPV. This is being returned to investors through the dividend over the remainder of the 5 year term. In the "Financials" section below, under "Rental Income Breakdown", we have shown the impact of returning this cash as a negative number in the "Property Insurance" line (presentation within Property Insurance is a temporary measure whilst our platform is updated to add a new descriptor).
We haven’t included any growth in rental values in our forecasts, which is simply a precaution. However, it is worth noting that Savills forecast rental growth for London (excluding ‘prime’ central London markets) of 29.5% over the five years from January 2015.
This transaction was approved by our RICS qualified Director of Property.
A two storey mid-terrace house with a kitchen, living room, conservatory and bathroom on the ground floor. Upstairs, there are two bedrooms and an ensuite WC.
The house has the benefit of off-street parking to the front of the property and a rear garden.
- Share Valuation
- House Price Index
- Rental Income Breakdown
- Latest Valuation
- Latest Share Valuation
- Latest Property Value
- Amortised Purchase Costs
- Deferred Tax
- - £9,605
- Latest Valuation
Note: The estimates provided do not constitute valuation advice; it remains your responsibility to determine valuation.
The HPI is an official statistic that captures changes in the value of residential properties across England and Wales. It is published by the Land Registry, which is a UK government organisation.
Note: Past performance is not a reliable indicator of future results.
Residential property investment is a total returns product. This information is the income component only. Increasing capital values have historically driven most of the return.
- Gross Rent per year (E)
- Service Charges
- - £0
- Gross Rental Revenue
- = £13,800
- Gross Rental Yield
- - £4,540
- Letting and Management
- Property Insurance
- Allowance for possible voids
- Maintenance Allowance
- Corporation Tax
- Dividends per year
- = £9,260
- Dividend Yield
Note: UK taxpayers are currently entitled to a £5,000 annual dividend allowance. This means that the total income related tax you pay is no greater than if you were to own the property directly. Gross rent and dividends may be lower than estimated. Tax treatment depends on individual circumstances and may be subject to change in future. See FAQs for more information on taxation. The Dividend Yield assumes an investment at the Latest Valuation.
12, Kings Highway, Plumstead, London, SE18 2NL,